Monday, 26 September 2011

Facebook and privacy - how will it impact on the IPO?

It would appear that there is a growing concern over recent Facebook changes which in turn raises more general worries over Facebook's approach to privacy.  Certainly speaking to my students today, all active Facebook users (I am not a Facebook user), there is growing concern about the new changes.   Next year's likely IPO for the company must raise concerns that the company will seek to commercialise too quickly, something which Sir Martin Sorrell has recently alluded to at the recent Royal Television Society Cambridge conference.

Sunday, 18 September 2011

Siemens shows awareness of societal pressures

The decision by Siemens to withdraw from the supply of nuclear power stations is a particularly interesting consequence of what Jensen might term "organisational legitimacy and identity in the public sphere" in her important 2001 paper on the application of the public sphere to public relations practice.   According to the announcement, Siemens is withdrawing from the supply of nuclear power plants responding to the "clear positioning of German society and politics for a pullout from nuclear energy".  

In other words it is not responding to market conditions but to societal pressure.  In most markets, Siemens supply of nuclear systems would be entirely socially acceptable, particularly in the current environment with jobs such a key focus for most countries but the announcement from Siemens suggests that Germany's focus on alternative energy makes this market focus no longer acceptable from such a major German supplier.  It is a very different decision to, for example, the reversal of Shell's Piper Alpha disposal which was taken in a crisis PR situation facing widespread public hostility.  This decision appears to be the consequence of what might be called rational discourse in the public sphere and Siemens reading of the situation as a reflective "economically successful, legal and responsible company".

What will the Siemens' shareholders think of the decision?


Sunday, 4 September 2011

Spills and Spin

A book we are planning to use alongside other works on our MA PR Corporate Communications course (within the MA PR programme) this coming year is Tom Bergin's Spills and Spin: The inside story of BP.  He has been an oil analyst with Reuters for a number of years so brings a strong understanding of the sector to his coverage of BP's problems.  Incidentally, today's Sunday Times reminds how BP is still struggling to move forward and one suspects to survive over the next three years on its own (would the UK government allow a takeover?).
(http://www.oilspillnews.net/wp-content/uploads/2011/01/1295067618-47.jpg)

I am only half way through but the book is really strong on exploring the culture,  organisation and personalities of BP as well as understanding the role of the communications, media and financial markets.  So it is an ideal book alongside the course before we even get to sessions on crisis PR.

The book is strong on setting the context for the Gulf accident.  It was well known that BP has had problems with building a strong safety culture for many years (way before the Texas refinery disaster in 2005) which does raise the question how could the main board directors have allowed both Browne and then Hayward to downgrade the minimal safety culture which was in place, even further by signing off so many cutbacks.

One of the issues which the BP saga throws up for corporate communications teams with major companies is what do you do if you sense your senior management is not managing the company in a prudent fashion.  To have two major accidents on American soil (Texas refinery) and US waters (Gulf rig) in less than five years as BP did, suggests major flaws in the organisation.  Bergin also highlights that the macho culture under Hayward (unlike Browne) led to a number of senior women leaving BP - an early warning sign?

As some commentators have pointed out, it is strange that the two bosses critically involved in BP have moved on from BP with apparent ease.   Lord Browne went on to advise the government on the future of universities and the adoption of market pricing (hopefully BP's trajectory is not an indicator of future problems in academia); while Hayward is set to make millions with Nat Rothschild in a new energy venture.  It turns out that both appear to have left all the problems behind with BP; while their own personal reputations seems relatively unscathed.  In complete contrast with Fred Godwin whose reputation has continued to decline while RBS' would appear to have strengthened.   Something of a mystery.